Can I retire at age 40 with 985,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $985,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.8%
1 years$81,340$80,616$79,909$79,219$78,545$75,459
2 years$40,268$39,518$38,791$38,086$37,403$34,331
3 years$26,578$25,825$25,100$24,402$23,730$20,769
4 years$19,735$18,984$18,267$17,580$16,924$14,098
5 years$15,630$14,884$14,176$13,503$12,866$10,180
6 years$12,895$12,154$11,456$10,799$10,180$7,637
7 years$10,941$10,207$9,520$8,878$8,279$5,879
8 years$9,477$8,749$8,074$7,448$6,868$4,607
9 years$8,339$7,618$6,954$6,344$5,784$3,659
10 years$7,429$6,715$6,063$5,468$4,928$2,936
11 years$6,684$5,978$5,337$4,759$4,239$2,373
12 years$6,065$5,365$4,737$4,174$3,673$1,930
13 years$5,541$4,849$4,232$3,685$3,203$1,578
14 years$5,092$4,407$3,802$3,271$2,808$1,294
15 years$4,704$4,026$3,433$2,918$2,472$1,065
16 years$4,364$3,694$3,113$2,612$2,185$879
17 years$4,065$3,402$2,832$2,347$1,937$726
18 years$3,799$3,143$2,586$2,115$1,723$602
19 years$3,561$2,913$2,367$1,911$1,535$499
20 years$3,348$2,707$2,172$1,731$1,371$414
21 years$3,155$2,522$1,998$1,571$1,227$344
22 years$2,980$2,354$1,842$1,428$1,100$286
23 years$2,820$2,202$1,700$1,301$987$238
24 years$2,674$2,063$1,573$1,187$888$198
25 years$2,539$1,936$1,456$1,084$799$165
26 years$2,416$1,819$1,351$991$719$138
27 years$2,301$1,712$1,254$907$649$115
28 years$2,195$1,613$1,166$831$585$96
29 years$2,097$1,522$1,085$762$528$80
30 years$2,005$1,437$1,011$699$477$66
31 years$1,919$1,359$942$642$432$55
32 years$1,839$1,286$879$590$391$46
33 years$1,764$1,218$821$543$353$39
34 years$1,693$1,154$767$499$320$32
35 years$1,627$1,095$717$460$290$27
36 years$1,564$1,039$671$423$263$22
37 years$1,505$987$628$390$238$19
38 years$1,450$938$588$360$216$16
39 years$1,397$892$551$332$196$13
40 years$1,347$848$516$306$177$11
41 years$1,299$808$484$282$161$9
42 years$1,254$769$454$260$146$8
43 years$1,211$733$426$240$133$6
44 years$1,170$698$400$222$120$5
45 years$1,131$666$376$205$109$4
46 years$1,094$635$353$189$99$4
47 years$1,059$606$331$175$90$3
48 years$1,025$579$311$162$82$3
49 years$993$553$293$149$74$2
50 years$962$528$275$138$67$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $985,000, adding $5,742 every year, while hoping to spend $44,795 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 49/41/10 Blend
39$985,000$985,000$985,000$985,000
40$1,091,393$1,039,188$1,023,920$1,141,662
41$1,155,053$1,042,447$1,010,560$1,179,992
42$1,223,706$1,044,364$995,251$1,216,416
43$1,297,812$1,044,826$977,880$1,254,949
44$1,377,880$1,043,713$958,331$1,295,803
45$1,464,468$1,040,899$936,478$1,339,210
46$1,558,187$1,036,246$912,194$1,385,431
47$1,659,713$1,029,613$885,343$1,434,753
48$1,769,786$1,020,846$855,784$1,487,498
49$1,889,220$1,009,785$823,369$1,544,019
50$2,018,914$996,257$787,945$1,604,713
51$2,159,851$980,081$749,349$1,670,016
52$2,313,116$961,066$707,413$1,740,414
53$2,479,903$939,007$661,960$1,816,446
54$2,661,524$913,689$612,807$1,898,709
55$2,859,423$884,884$559,759$1,987,864
56$3,075,190$852,349$502,618$2,084,646
57$3,310,575$815,830$441,171$2,189,867
58$3,567,503$775,055$375,200$2,304,429
59$3,848,095$729,739$304,475$2,429,330
60$4,154,682$679,578$228,757$2,565,675
61$4,489,836$624,253$147,796$2,714,688
62$4,856,383$563,425$61,331$2,877,724
63$5,257,439$496,738$0$3,056,282
64$5,696,432$423,812$0$3,255,325
65$6,177,138$344,249$0$3,480,586
66$6,703,716$257,627$0$3,727,578
67$7,280,745$163,501$0$3,998,582
68$7,913,268$61,400$0$4,296,118
69$8,606,840$0$0$4,622,973
70$9,367,579$0$0$5,004,410
71$10,202,223$0$0$5,453,403
72$11,118,193$0$0$5,946,257
73$12,123,666$0$0$6,487,386
74$13,227,646$0$0$7,081,650
75$14,440,055$0$0$7,734,405
76$15,771,820$0$0$8,451,549
77$17,234,979$0$0$9,239,581
78$18,842,795$0$0$10,105,660
79$20,609,879$0$0$11,057,674
80$22,552,327$0$0$12,104,313
81$24,687,872$0$0$13,255,149
82$27,036,051$0$0$14,520,731
83$29,618,391$0$0$15,912,680
84$32,458,606$0$0$17,443,798
85$35,582,825$0$0$19,128,194
86$39,019,839$0$0$20,981,409
87$42,801,366$0$0$23,020,569
88$46,962,356$0$0$25,264,544
89$51,541,318$0$0$27,734,125
90$56,580,681$0$0$30,452,220
91$62,127,196$0$0$33,444,071
92$68,232,378$0$0$36,737,491
93$74,952,987$0$0$40,363,126
94$82,351,567$0$0$44,354,747
95$90,497,033$0$0$48,749,562
96$99,465,323$0$0$53,588,572
97$109,340,113$0$0$58,916,959
98$120,213,605$0$0$64,784,505
99$132,187,399$0$0$71,246,069
100$145,373,448$0$0$78,362,098